Ah, the thrill of finding your dream home! But just as you're ready to pop the champagne, you hear the dreaded word: gazumping. This frustrating scenario occurs when a seller accepts your offer, only to later accept a higher bid from someone else before contracts are exchanged. While legal, this practice can leave buyers feeling blindsided and disheartened. Here's how you can safeguard your homebuying journey.

Understanding Gazumping

In England and Wales, a property sale isn't legally binding until contracts are exchanged. This means sellers can be tempted by higher offers, especially in a competitive market. A cash buyer or someone without a property chain might also sway a seller's decision.

Steps to Protect Yourself

  1. Act Swiftly: Once your offer is accepted, immediately instruct your solicitor and mortgage lender. Time is of the essence, and delays can open the door to other bidders.

  2. Secure a Mortgage in Principle: Demonstrating financial readiness with a mortgage in principle can make your offer more appealing to sellers.

  3. Communicate Regularly: Keep in touch with the seller and their representatives to show your commitment and ensure the process stays on track.

  4. Negotiate a Lock-Out Agreement: Consider an exclusivity or lock-out agreement, granting you a set period to exchange contracts without the seller entertaining other offers.

  5. Prepare for the Unexpected: Despite your best efforts, gazumping can still occur. Having a backup plan can help you manage stress and move forward.

While gazumping can be a setback, taking these proactive steps can help you navigate the homebuying process with confidence. And remember, we're here to assist you every step of the way, ensuring your journey to homeownership is as smooth as possible.

 

 

 

If you need advice and help on buying or selling a property, please contact us to speak with one of our award-winning team who will be able to help you.